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The Boeing Company (BA - Analyst Report) has received an order from Turkish Airlines for 15 777-300 Extended Range (“ER”) airplanes. The order worth $4.7 billion at list prices includes options for five additional 777-300ERs.

The Turkish Airlines had made the commitment in October 2012.  Currently, the Turkish Airlines' fleet includes 12 777-300ERs.

The Boeing 777 is the world's most successful twin-engine, long-haul airplane. It produces 22% less carbon dioxide per seat and costs 20% less to operate per seat. The Boeing 777-300 ER is the longer range version of the Boeing 777-300. It is powered by the world's most powerful turbofan engines. The modified extended range includes the most powerful engine, the GE90-115B, ever produced. The aircraft is also equipped with raked wingtips, additional fuel tanks, strengthened main landing gear and fuselage and a higher Maximum Take-off Weight. The 386 seater airplane in a three-class configuration has a maximum range of 7,930 nautical miles.

Recently in October, the company had increased the production rate for Boeing 777 from 7 per month to 8.3 per month. The company has implemented new technologies in order to achieve the highest production rate. The increase reflects the increased demand for the airplane.

Boeing is popular amongst various airlines for its excellent aircrafts. Turkish Airlines currently operates a fleet that includes nearly 100 Boeing airplanes. Moreover, in November, the company has received an order, worth $4.9 billion, for 23 737-800s and 31 737 MAX 8s from SilkAir.

Boeing’s revenue exposure is spread across more than 90 countries around the globe. Due to the continuing recovery of the global economy, demand for Boeing’s Commercial Airplanes is benefiting from a steady improvement in passenger and freight traffic. Overall, we expect the growth momentum to be maintained by its order backlog, planned production rate increases and a globally diversified customer base.

However in the near term, headwinds over the global airline industry along with expected cutbacks in the U.S. defense budget remain a matter of concern. Like its peer, Lockheed Martin Corporation (LMT - Analyst Report), the company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Based in Chicago, Boeing Company is a premier jet aircraft manufacturer and one of the largest defense contractors in the U.S. The company’s customers include domestic and foreign airlines, the U.S. Department of Defense, the Department of Homeland Security, the National Aeronautics and Space Administration, other aerospace prime contractors, and certain U.S. government and commercial communications customers.

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